Coca Cola 2010 Annual Report Download - page 85

Overview of Financial Position
In 2010, the Company had a number of significant transactions and events that impacted our consolidated balance
sheet. Refer to the heading ‘‘Operations Review — Structural Changes, Acquired Brands and New License
Agreements,’’ for additional information related to these transactions and events. The most significant impact on our
consolidated balance sheet was related to our acquisition of CCE’s North American business, which resulted in the
Company recording total assets of approximately $22.2 billion as of the acquisition date. Refer to Note 2 of Notes to
Consolidated Financial Statements for a preliminary allocation of the purchase price by major class of assets and
liabilities. The majority of the fluctuations in individual line items in our consolidated balance sheet as of December 31,
2010, compared to our consolidated balance sheet as of December 31, 2009, were attributable to this acquisition. The
following table illustrates the change in the individual line items of the Company’s consolidated balance sheet
(in millions):
December 31, 2010 2009 Change
Cash and cash equivalents $ 8,517 $ 7,021 $ 1,496
Short-term investments 2,682 2,130 552
Marketable securities 138 62 76
Trade accounts receivable — net 4,430 3,758 672
Inventories 2,650 2,354 296
Prepaid expenses and other assets 3,162 2,226 936
Equity method investments 6,954 6,217 737
Other investments, principally bottling companies 631 538 93
Other assets 2,121 1,976 145
Property, plant and equipment — net 14,727 9,561 5,166
Trademarks with indefinite lives 6,356 6,183 173
Bottlers’ franchise rights with indefinite lives 7,511 1,953 5,558
Goodwill 11,665 4,224 7,441
Other intangible assets 1,377 468 909
Total assets $ 72,921 $ 48,671 $ 24,250
Accounts payable and accrued expenses $ 8,859 $ 6,657 $ 2,202
Loans and notes payable 8,100 6,749 1,351
Current maturities of long-term debt 1,276 51 1,225
Accrued income taxes 273 264 9
Long-term debt 14,041 5,059 8,982
Other liabilities 4,794 2,965 1,829
Deferred income taxes 4,261 1,580 2,681
Total liabilities 41,604 23,325 18,279
Net assets $ 31,317 $ 25,346 $ 5,9711
1Includes a decrease in net assets of $947 million resulting from translation adjustments in various balance sheet accounts.
The table above includes the impact of the following transactions and events:
• Property, plant and equipment — net increased $5,166 million, primarily due to the $5,385 million of property,
plant and equipment acquired in connection with our acquisition of CCE’s North American business. The impact
of this acquisition was partially offset by a decrease of $315 million due to the disposal of our Norwegian and
Swedish bottling operations and a decrease of $400 million related to the deconsolidation of certain entities as a
result of our adoption of new accounting guidance issued by the FASB. Refer to Note 1 and Note 2 of Notes to
Consolidated Financial Statements.
• Bottlers’ franchise rights with indefinite lives increased $5,558 million, primarily due to the $5,100 million of
indefinite-lived franchise rights we reacquired in connection with our acquisition of CCE’s North American
business and $865 million related to DPS license agreements. The impact of the previously mentioned items was
partially offset by the impact of the deconsolidation of certain entities as a result of our adoption of new
accounting guidance issued by the FASB.
• Goodwill increased $7,441 million, primarily due to $7,746 million of goodwill recognized in connection with our
acquisition of CCE’s North American business. The acquired goodwill was partially offset by the impact of the
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